Flexible Tracking of Outstanding Amounts
Track receivables and payables at the party level or against individual invoices and bills, based on your business requirements. TallyPrime provides flexible tracking options for managing outstanding amounts and settlements based on your business requirements.
Ways to Track Outstanding Amounts
Track Overall Outstanding Balance
When you do not need invoice-wise tracking, you can monitor the overall outstanding balance of a customer or supplier. Receipts and payments are adjusted against the overall party balance instead of individual invoices or bills.
This approach is suitable when you:
- Do not need to monitor individual invoices or bills.
- Receive or make payments against the overall party balance.
- Only need visibility into the total amount due from or due to a party.
Track Individual Invoices and Bills | Bill-wise Tracking
Use this method when you need invoice-wise visibility and settlement. With bill-wise tracking, TallyPrime maintains outstanding amounts against individual invoices or bills, enabling invoice-wise monitoring of due dates, ageing, overdue amounts, and settlements.
This approach is suitable when you:
- Have invoices or bills with different due dates.
- Need to define and monitor credit periods.
- Want to analyse ageing and overdue amounts invoice-wise.
- Receive or make payments against specific invoices or bills.
- Need to calculate interest based on individual outstanding invoices or bills.
Recording Receipts and Payments
The tracking method determines how receipts and payments affect outstanding balances. Depending on how outstandings are managed, receipts and payments can create new outstanding amounts, adjust existing ones, or be recorded without reference to a specific invoice or bill.
You can use the following reference types:
- New Ref: Create a new reference.
- Against Ref: Adjust an amount against an existing outstanding reference.
- On Account: Record an amount without linking it to a specific invoice or bill.
You can use On Account references for advance receipts and payments even when bill-wise tracking is enabled.
For advance receipts and payments, where the corresponding invoice or bill is not yet available, you can use New Ref or On Account. Once the invoice or bill is recorded, the outstanding amount can be adjusted using Against Ref or On Account, based on your business requirements.
The reference type you choose determines how outstanding amounts are created, adjusted, and reported.
